Purplebricks’ flotation on the AIM stock market yesterday was a muted affair.
With a launch price of 100p, the shares quickly went up to 106.33p, before slipping to 94p.
The share price finished the day at 93p, with City analysts saying investors looked unconvinced by the business model.
However, despite Purplebricks’ lack of fireworks yesterday, online agent Alex Gosling of House Simple insisted: “The Purplebricks float could well be a watershed moment for the online agency sector.
He said: “There is a lot of interest around the sector at the moment. The estate agency market as a whole has been ripe for change.
“High street agents have controlled the market. Consumers have had little choice but to pay the high fees charged by agents because there hasn’t been an alternative. Now online estate agents offer a credible alternative.
“Most buyers now carry out their initial property searches online, so it begs the question why shouldn’t home owners sell their properties online as well. It makes complete sense.
“Consumers want choice and that’s what online estate agents are offering – a high quality service but for a fraction of the price of a high street agent.
“As a business, we have already seen record growth in 2015, with new property listings on the website more than doubling over the past 12 months.
“We have sold more than £400m worth of properties this year alone, saving home owners £6.3m in high street agent fees.
“And with the innovations we are planning to bring to the market, 2016 promises to be an even more exciting year.”
There is a Purplebricks corporate video available to watch here:
Comments (9)
I recently sold a property through Savills in Poole as I was confident in the staff and their ability to get the best price irrespective of the commission charged. We subsequently tried to buy through PB and the whole experience was a nightmare especially having to negotiate directly with the vendor and would have preferred to go through a professional 3rd party.
What vendors don’t realise is that whilst they may save a few pounds (and potentially achieve a lower selling price), buyers prefer to use a good Estate Agent!!
So here is a company yet to make a profit floating on the SE before proven? If I were a founder I would have done the same, bust within the next financial year.
Well PeeBee just another £0.52 to go then my predicted 36p valuation will be correct. The question is will PB be trading at 36p before or after Xmas?
Currently trading at £0.88
I didn’t realise we had an overnight property crash to cause such an immediate 5.4% reduction in an Estate Agency’s ‘value’ – did anyone else?.
I am led to believe that the option of some people associated with PB that this stock market floatation was rushed through as it’s become apparent (as it already was to most of us) that this business model is deeply flawed.
One of the areas that initially proved successful for them for instance was they had recruited some reasonable agents. To start with they couldn’t throw off their old mantra and these guys put some effort into securing sales for vendors. Now they have been operating for a while however that’s changed and they have had problems with over valuing to win business and simple lack of interest in seeing vendors sell.
One thing is for sure however, PB at least had some momentum before the wheels started to come off the bus, I’m not sure where that leaves Emoove or House Simple however!
The quoted savings aggrevated the life our of me…… you see it in our town time after time vendors jumping between the online offerings paying up front fee after up front fee to eventually have to return to the professional high street agents. I’d be intrigued to see if they factored all that in to these supposed savings! Merry Christmas one and all
A saving of £6.3m on £400m of property would mean that you’ve paid them around £1.8m to move. High Street agent fees wildly over exaggerated yet again. If lies are told about the only real selling point you’ve got its not a great starting point. What percentage do you think we charge?
And he huffed and he puffed and he blew the house down
£25m and 12 months to find a sustainable model.
Assuming MB & KB can be bothered now they’ve had a fabled “liquidity event.”
I have no problem with VCs and angels staking risk capital on major hope factor investments but Average Joe may well also have exposure to this unsustainable (loss making) business